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HomeMy WebLinkAbout#06 - Wildflower 4th Addition Security Reduction STAFF REPORT DATE: January 17, 2023 CONSENT AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve Security Reductions for Wildflower at Lake Elmo 4th Addition SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sophia Jensen, Planner Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the public sanitary sewer and watermain improvements and approve security reductions for the Wildflower at Lake Elmo 4th Addition? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the public sanitary sewer and watermain improvements and reduce the development security for the Wildflower 4th Addition. This request has been reviewed and is being recommended for approval in accordance with the approved Development Agreement, and contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. The Development Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Wildflower 4th Addition $ 2,626,236 $ 2,179,838 The Wildflower 4th Addition public sanitary sewer and watermain improvements are in the warranty period as identified on the attached Certificate of Completion. Twenty-five percent (25%) of the original security amount will be retained until the warranty periods have expired. FISCAL IMPACT: It is the City’s goal to retain at all times during the subdivision improvements a security amount that is adequate to ensure completion of all elements of the improvements as protection to the city tax payers against the potential of developer default. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, accept the public sanitary sewer and watermain improvements and approve the security reductions as detailed in the attached worksheet for the Wildflower 4th Addition, all contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to accept the public sanitary sewer and watermain improvements and approve the security reductions as detailed in the attached worksheet for the Wildflower 4th Addition, all contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement.” ATTACHMENTS: 1. Watermain and Sanitary Sewer Certificate of Completion – Wildflower 4th Addition. 2. Security Reduction Worksheet – Wildflower 4th Addition. CERTIFICATE OF COMPLETION DATE OF ISSUANCE: JANUARY 17, 2023 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: ROBERT ENGSTROM COMPANIES SUBDIVISION NAME: WILDFLOWER 4TH ADDITION PROJECT NO.: 2021.113 This Certification of Completion applies to all work under the Development Agreement This Certification of Completion applies to the following specified parts of the Development Agreement Section 34.A – Public sanitary sewer and watermain Section 34.B – Public improvements including street construction, including concrete curb and gutter, sidewalks and trails, materials and equipment. I do hereby certify that the work to which this Certificate applies has been constructed in accordance with the Development Agreement dated February 2, 2022. The above-mentioned improvement is hereby declared to be complete and acceptance of this work is recommended. DATE OF COMPLETION: January 17, 2023 Jack Griffin Reg. No. 22492 FOCUS Engineering, inc. Section 34.A Warranty Period Begins January 17, 2023 and ends January 17, 2025 Section 34.B Warranty Period Begins and ends WILDFLOWER AT LAKE ELMO 4TH ADDITION Time of Performance:  August 31, 2022DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Sanitary Sewer $257,538 $321,923 $241,442Watermain $218,620 $273,275 $204,956Streets & Sidewalks $1,240,903 $1,551,129Storm Sewer $238,267 $297,834Erosion Control $38,975 $48,719Surface Water Facilities (BMPs) $12,460 $15,575Trails $50,907 $63,634Street Lighting $24,000 $30,000Street Signs and Traffic Control Signs $5,219 $6,524Landscaping $5,000 $6,250Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $4,100 $5,125Private Utilities NA NARecord Drawings $5,000 $6,250TOTALS $2,100,989 $2,626,236RELEASED AMOUNTS:$446,398CUMMULATIVE AMOUNTS:$446,398SECURITY AMOUNT REMAINING:$2,179,838DATE:1/17/2023REDUCTIONS